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Home My WebLink About10-07-2014 C3 CDBG & GIA Funding PrioritiesCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Derek Johnson, Community Development Director Prepared By: Tyler Corey, Housing Programs Manager SUBJECT: CONSIDERATION OF THE HUMAN RELATION COMMISSION’S RECOMMENDED PRIORITIES FOR THE 2015 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND GRANTS-IN-AID (GIA) PROGRAMS RECOMMENDATION 1. As recommended by the Human Relations Commission, approve Community Development Block Grant and Grants-In-Aid funding priorities for 2015; 2. Make a determination pursuant to Section 15061 (b)(3) General Rule and Section 15306 Categorical Exemption of the CEQA Guidelines that developing priorities for funding will not have a significant effect on the environment and is exempt from environmental review. BACKGROUND The City’s annual Community Development Block Grant (CDBG) review process provides Council and the public with an opportunity to provide early input in the grant award process. Establishing funding priorities is the first step in the process, which helps to maintain an open, inclusive and fair grant application process. The Human Relations Commission (HRC) is the advisor to the Council on funding priorities and funding recommendations. The four steps in the CDBG review process include: 1. HRC hosts a “Needs Workshop”: The HRC hosts a public hearing to inform the public about upcoming funding amounts and how to apply for grants, to hear community views on grant funding needs, and to recommend funding priorities (held on September 3, 2014). Attachment 1 contains the draft minutes from this hearing. 2. Council priority-setting: Council sets CDBG and GIA funding priorities. This is scheduled for October 7, 2014. 3. CDBG applications hearing: HRC holds a public hearing to review CDBG applications in light of the adopted funding priorities and forwards its funding recommendations to the County for Program Year 2015 (scheduled for December 3, 2014). 4. CDBG Program hearing: After the County releases the Draft One-Year Action Plan, the City Council holds a public hearing to approve the City’s 2015 CDBG Program and forwards its recommendation to the Urban County for inclusion in the final One-Year Action Plan (tentatively scheduled for February 3, 2015). On September 3, 2014, the HRC completed the first step by holding its combined GIA and CDBG community needs hearing. An audience of about 50 persons attended the hearing and 16 speakers addressed a wide variety of community needs. The testimony provided indicated to the Commission and staff that difficult economic conditions were continuing to drive an increase in 10/7/2014 C3 C3 - 1 CDBG & GIA Funding Priorities for the 2015 Program Year Page 2 service needs. Representatives from non-profits who spoke pointed to an increase in demand for services including emergency shelter, transitional housing, hunger prevention, child care, health services, affordable housing and social programs, while funding at the federal, state and local level has decreased. The increase in demand along with a decrease in grant funding has strained providers’ ability to deliver core services. The service providers stressed the importance of the GIA and CDBG programs and encouraged the HRC to continue its support. HRC Recommended CDBG Funding Priorities for Program Year 2014 After discussion of community needs and testimony provided by the public, the Commission reviewed the 2014 CDBG funding priorities and decided to re-affirm the priorities without modification. The HRC’s recommended 2015 CDBG funding priorities are: 1. Emergency and transitional shelter, homelessness prevention and services. 2. Develop and enhance affordable housing for low and very-low income persons. 3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 4. Economic development (to include seismic retrofit, economic stability, low and moderate income jobs). The priorities adopted by Council set the framework by which the HRC reviews grant applications and recommends funding choices to the Council. Generally, most applications for CDBG funds fit intuitively within one of the listed categories. HRC Recommended GIA Funding Priorities for 2015 The HRC also reviewed the 2014 GIA funding priorities and decided to re-affirm the priorities without modification. The list below is bulleted instead of numbered specifically because the HRC does not rank these recommended funding priorities to allow maximum flexibility when making funding recommendations dependent upon the applications received. • Homeless prevention including supportive services and transitional housing • Hunger and malnutrition prevention • Supportive physical and mental health services • Services for seniors and/or people with disabilities • Supportive services for youth and their development; especially targeted to youth at risk Next Steps The next step in the CDBG and GIA program cycles is for the Council to consider the HRC’s recommendations and to affirm or revise the City’s funding priorities. This step is important because these priorities will guide the HRC’s actions when it reviews grant applications. These priorities will also guide Council’s final funding decisions when it considers CDBG funding recommendations on February 3, 2015 and GIA funding recommendations on June 9, 2015. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061 (b)(3) General Rule and Section 15306 Categorical Exemption of the CEQA Guidelines. The project is an action to develop priorities to guide future decisions regarding the allocation of CDBG & GIA funding. Each grant request approved for funding will be subject to CEQA at the time the project is filed. C3 - 2 CDBG & GIA Funding Priorities for the 2015 Program Year Page 3 It can be seen with certainty that the proposed action to develop priorities for funding will have no significant effect on the environment and is exempt from environmental review. FISCAL IMPACT Decisions made regarding priorities will affect how CDBG and GIA applications are evaluated and chosen for support. The City receives CDBG funds through the County allotment and, while this does not directly impact the General Fund, to the extent that projects can be funded through CDBG, they are not otherwise requesting money from the City’s General Fund. The City does designate a portion of General Fund monies for the GIA program and the priorities expressed by the Council will influence how those grants will be awarded. Establishing priorities has no immediate fiscal impact but can be helpful in allocating the CDBG and GIA funding regardless of the amount. ALTERNATIVES 1. The Council may modify the proposed funding priorities. 2. The Council may continue consideration of funding priorities. Direction should be given to staff regarding additional information needed to make a decision on priorities. This alternative is not recommended because the deadline to submit a request for 2015 CDBG funds ends on October 15, 2014, and applicants to the program benefit from knowing the City’s funding priorities in advance. ATTACHMENT 1. HRC Draft Meeting Minutes from 9-3-14 T:\Council Agenda Reports\2014\2014-10-07\CDBG Funding Priorties (Johnson-Corey)\C8 - 2015-17 Amendment to CDBG Cooperation Agreement with County.docx C3 - 3 HUMAN RELATIONS COMMISSION (HRC) MINUTES REGULAR MEETING September 3, 2014 5:00 p.m. 990 Palm St – Council Chambers CALL TO ORDER: 5:00 PM PRESENT: Chairperson: Ron Tilley; Vice-Chairperson: Michelle Tasseff; Commissioners: Robert Clayton, Ivan Simon*, Gene Strohl, Maria Troy *Left the meeting at 6:45 p.m. ABSENT: Janet Pierucci STAFF PRESENT: Greg Zocher, Human Resources Manager; Tyler Corey, Housing Programs Manager CONSIDERATION OF MINUTES: ACTION: Moved by Tasseff/Simon to approve the minutes of August 6, 2014 as submitted; motion carried 6:0. ______________________________________________________________ PUBLIC COMMENT Public comment was received from 17 citizens. BUSINESS ITEMS Item 1. OVERVIEW OF THE GRANTS-IN-AID AND CDBG PROCESS (ZOCHER/COREY) Commissioners agreed by consensus to cancel Item 1, because the majority of public comment was given during the open public comment period. Item 2. TESTIMONY FROM THE PUBLIC REGARDING HEALTH AND HUMAN SERVICE NEEDS FOR RESIDENTS OF THE CITY OF SAN LUIS OBISPO (TILLEY) Commissioners received additional testimony from the public. *Commissioner Simon left the meeting at 6:45 p.m. Attachment 1 C3 - 4 Item 3. ESTABLISH GIA AND CDBG FUNDING PRIORITIES (TILLEY) ACTION: Moved by Clayton/Tasseff to keep GIA funding priorities as is; motion carried 5:0. Grants-In-Aid (non-ranked)  Homeless prevention including supportive services and transitional housing  Hunger and malnutrition Prevention  Supportive physical and mental health services  Services for seniors and/or people with disabilities  Supportive services for youth and their development; especially targeted to youth at risk ACTION: Moved by Clayton/Troy to keep CDBG funding priorities as is; motion carried 5:0 CDBG (ranked) 1. Emergency and transitional shelter, homelessness prevention and services. 2. Develop and enhance affordable housing for low and very-low income persons. 3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 4. Economic development (to include seismic retrofit, economic stability, low and moderate income jobs). Item 4. REVIEW 2ND QUARTER 2014 COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) REPORT (COREY) Housing Programs Manager Corey presented the 2nd Quarter 2014 Community Development Block Grant report. COMMISSIONER COMMENTS No commissioner comments. There being no further business to come before the HRC, Tilley adjourned the HRC meeting at 7:20 p.m. to the regular meeting scheduled for Wednesday, October 1, 2014 at 5:00 p.m. in the Council Hearing Room at 990 Palm St. Respectfully Submitted, Greg Zocher, Human Resources Manager Attachment 1 C3 - 5 Page intentionally left blank. C3 - 6